Ten RFID Myths and Realities

It seems that you can hardly pick up an automated data collection magazine without seeing a cover story, or even the entire magazine, devoted to RFID, the newly-emerging wonder-technology. There is so much RFID information floating around the internet and appearing in magazines and newspapers that it is easy to become confused or misinformed. To set the record straight, Barcoding Inc. has created a list of the top 10 RFID myths and realities.

RFID is a "talking" barcode
You can read every RFID tag every time
You can take inventoy with the push of a button
RFID delivers perfect information
You can buy RFID tags for 5¢
The tag cost is critical to making any deployment pay off
RFID is primarily a supply chain technology
RFID spells the end to privacy
RFID is easy to deploy
I can afford to wait

Myth #1 - RFID is a "talking" barcode.

Some people think that RFID tags are merely barcodes that can "talk" to readers instead of having to be read by a laser or imager. While this is somewhat true, the real differences are more significant. RFID tags are much more powerful than barcode labels because a typical RFID tag can hold 2KB of data, far more than a typical barcode, which represents just 10-12 digits. RFID tags can also be programmed and reprogrammed, making them a dynamic part of a data collection solution where barcodes can be printed once and then must be reprinted each time the information changes.

Myth #2: You can read every RFID tag every time.

There are many factors that affect the read rate, including the distance the tag is from the reader, and what substance the tag is placed on. Metal and water are not very good conductors of ultra-high frequency signals, while some low-frequency tags can be embedded in metal construction parts.

The tag orientation and design are also factors that can affect a tags readability. Good engineering and system design will increase the read rate of tags and some procedures may have to be altered to obtain acceptable read rates. It is not possible to read every tag every time.

Myth #3: You can take inventory with a push of a button.

The technology does not exist today and, if it did, the cost would be prohibitive. In order to take a "push-button inventory," you would have to position RFID readers every 10 feet throughout your facility. Instead, in real systems, inventory is tracked by knowing when an item came in, where it was placed, and when it left. While RFID allows inventory to be taken much faster than with current barcode practices, taking inventory with the push of a button is not available at this time and it may not be available for quite some time.

Myth #4: RFID delivers perfect information.

The information the tag sends to the reader is only as good as the information that was put on the tag. This opens the door to human error in data entry. Information can also be affected by poor system design, unskillful or incompetent integration, poor software design, unfriendly materials such as water and metal, human error, double reads, no reads and other factors. However, a well-designed system that detects and corrects errors can provide near perfect information about your supply chain.

Myth #5: You can buy RFID tags for 5¢.

You can’t purchase 5¢ tags, as of Fall 2006. Tags are not yet close to 5¢ yet, though the cost of tags has dropped considerably in the last two years. Before we see tags for a nickel,, a standard has to emerge that will allow tags to be mass produced in the billions. For instance, Gillette's recently ordered 500M tags from Alien at 10¢ each.

The good news, however, is that tags do not have to be 5¢ in order to derive an ROI

Myth #6: The tag cost is critical to making any deployment pay off.

Tag costs are only one variable. Among other costs, you may need to buy readers, wireless local area networks (WLANs), software, and database integration. Many profitable applications can be build with existing technology at existing prices. For instance, North American railroads use $25 tags and $40K readers. These tags are permanently affixed to rail cars and can be read to, and written to, thousands of times before they need to be replaced.

Myth #7: RFID is primarily a supply chain technology.

RFID has been deployed and is an effective solution for:

Automobile manufacturing
WIP, just in sequence, right parts
Access control and security
Payment systems for fuel and merchandise
Toll roads

RFID represents an opportunity to add value as opposed to a cost incurred for tracking items

Myth #8: RFID spells the end to privacy.

RFID in consumer products and retail is seen as a potentially invasive technology. People are afraid that the items they buy in stores will have the radio chips on them and then people can "see" what they have purchased by driving by their house and using an RFID reader. As RFID evolves from an emerging technology, so will the privacy protection systems. Consumer products have “kill” software which renders an RFID tag useless once it leaves the store. This is similar to the security devices you see used on many DVD's and CD's in electronic stores, once purchased they are killed so they don't alert the security sensors at the front of the store that they are "stolen".

Myth #9: RFID is easy to deploy.

Demonstrations are easy to set up, but production deployment in distribution centers, warehouses, retail stores or manufacturing facilities can be challenging and frustrating, even for the most experienced professional. The entire environment must be analyzed, including the types of shelving (metal), types of lighting, and sources of radio interference. Even legacy 900MHz phone systems can interfere with RFID tags and readers. In order to successfully deploy an RFID system in a warehouse, a wireless site survey is required to identify all possible sources of interference and signal attenuation

Myth #10: I can afford to wait.

It’s better to get a deployment right than to be first. Barcoding Inc. recommends starting early, proceed slowly, and learning step-by-step. You want to avoid rushed, catch-up deployments necessitated by competitive pressure. Many large companies are waiting to see how Wal-Mart's tracking of cartons and pallets works, but they have already begun the investigative process so they can be ready when the time comes.

Do not put yourself in the position of having to tag products for your customers, without being able to derive value from those tags within your own operations.